Tesla Rolls Out Affordable Model Y to Boost U.S. Sales

Tesla has launched a more budget-friendly variant of its Model Y in the United States, the company announced on Tuesday. Priced at $44,990, the new long-range rear-wheel drive model offers a wallet-friendly alternative for electric vehicle enthusiasts.

A $7,500 federal tax credit reduces the effective cost of the new Model Y to $37,490. This move appears strategically aimed at countering a significant 13% drop in quarterly sales, attributed to criticism surrounding CEO Elon Musk and mounting global competition.

The price of Tesla's long-range all-wheel drive version remains unchanged at $48,990. The company has yet to comment on further strategies and is expected to release its second-quarter earnings in July.

(With inputs from agencies.)